By Brandon M. Suffel Contributor for Breakfast at Midnight April 6, 2020
I hope you all had a wonderful weekend! Don’t forget to follow us on Twitter @SuffelStocks.
Don’t get too cocky
Optimism overrides the individual conscious of each investor as fears of the coronavirus and the number of cases hitting its peak soon approach. As for the main indexes today, the dow, the spy, and the nasdaq have seen their best day this month. This bounce sure does provide ordinary analytical spectators a wild show – and something prolific to report. On the other hand, the losses we have been anticipating have been believed to have already hit. However, we don’t know whether or not the rise in cases have hit their peak – it is estimated that within the next two weeks, we are going to watch firsthand as the peak makes its way into headlines. A market recovery today sure does bring immense optimism to the table. And it sure does make Americans wonder if their market has started a recovery period. I say wait until the cases peak and our economic numbers continue to release.
Let’s postpone our Zoom date…
Zoom is a videoconference platform allowing businesses, schools, families, and friends the ability to live video chat together. Although there are other applications like FaceTime, Skype, and ooVoo — Zoom has been attracting everyone from its humorous memes to sentimental engagements. Zoom is still considered new, and if you haven’t tried it yet – then maybe you don’t know what I’m talking about – and that’s okay. Even if you’ve never used Zoom, wouldn’t you still like to know their share prices dropped?
Zoom Video Communications, Inc $ZM shares dropped $5.51 (- 4.31%) today. Meanwhile most stocks in the market experienced significant profits. There are reports New York City schools are banning Zoom video lectures due to rising security concerns. News like this scares ordinary technology users because it haunts the only thing they have… their personal accounts filled with their personal information. I wouldn’t be surprised if New York City schools aren’t the first. If Zoom can’t find a way to fix this rumor and solve their predicament… eventually students and everyone else will find a new platform to communicate. I hope $ZM figures it out soon because they’ve been changing the game for the past month – and they definitely have plenty more to offer.
They struck $GLD!!!
Gold futures today experienced their best day since 2012. Which is odd because Gold usually doesn’t bode well in markets unless fear is imminent… with the markets performance today – at its best in over two weeks – how is gold still going up? Most economists and your parents will argue “Invest in gold when a recession is imminent.” That’s one way to put it, and it’s valid – and it’s Gold.
Gold is considered to be the safest investment when markets are experiencing turmoil. And with JP Morgans most recent headline today, “Investors should prepare for a ‘vicious spiral’ more than twice as bad as the financial crisis,” how should we bode with this news? Obviously it drives grave fear into many… even myself. However, if there’s any man who knows the market best, it’s Mr. Warren Buffett. And this resilient quote may offer you an opinion on how he’s playing this market while this ‘vicious spiral’ takes its inclination. Mr. Buffett says to “be fearful when others are greedy; and be greedy when others are fearful.” Insisting that when others are being bullish (buying more) avoid those high prices: it’s not worth it. But, when others are being bearish (selling more) opt in and take action: because prices may not be this cheap for 10 or more years – and we honestly don’t know. Rich Dad Poor Dad author, Robert Kiyosaki, says “Don’t save your money! Spend it on the ‘best buy for future security’ – MarketWatch.”
Experts like both Mr. Buffett and Kiyosaki could be wrong… but they do compel strong arguments, and they are entitled to their opinions – and most importantly – they’ve experienced more than most of us. I’m going to read more about Mr. Warren Buffett first, merely so I can know more about his experience with the ’87 crash.